Monthly Permits

Outside The Yellow: 2018 Leasing Activity Update

Jun 6, 2018

Data Sources and Methodology Compiled all lease level activity for the prior twelve months using DrillingInfo. Analyzed leases documents, memos of leases, extensions and lease amendments in order to identify trends in company leasing activity. Highlights Use the map to filter by date, company and instrument type. Twelve Month Activity Map ## [1] "C:/Program Files/R/R-3.

Monthly Permits

May 5, 2018

Version Update Added capability to filter to company permits and acreage. Export table now includes surface longitude and suface latitude. Overview of Permitting Activity Currently only shows horizontal permits. Wells contains following permitting attributes: Company, Well Name, Well Type, Approval Date, Formation and Permit Depth. 2nd map identifies permitted well pads using clustering.

EIA DUC Report

May 5, 2018

Overview of EIA DUC Inventory Report A drilled but uncompleted well (DUC) is a new well after the end of the drilling process, but its first completion process has not been concluded. EIA uses 20 days to estimate days to TD. This likely overestimates DUC inventory in basins where PAD drilling is predominant. Report tracks monthly changes in DUC inventory beginning in 2014. Permian Monthly Highlights Permian Basin ended April with ~3,086 wells waiting on completion.

1Q'18 Conference Call Highlights

May 5, 2018

Service Companies Baker Hughes Halliburton Superior Energy Services US Silica Upstream Companies Anadarko Petroleum Apache Corporation Callon Petroleum Carrizo Oil and Gas Centennial Resources Chevron Cimarex Energy Devon Energy Diamondback Energy Encana Energen EOG Resources ExxonMobil Halcon Resources Jagged Peak Energy Laredo Petroleum Marathon Oil Matador Resources Occidental Petroleum Noble Energy Oasis Petroleum Parsley Energy PDC Energy Pioneer Natural Resources QEP Resources Resolute Energy RSP Permian WPX Energy Turn mobile devices horizontal for figures to display properly.

EIA Short Term Energy Outook Forecasts

Apr 4, 2018

Methodology Obtain historical data from EIA starting in the fourth quarter of 2017. Highlight forecasts to show monthly change. Highlights Noted increased production revisions to EIA forecasts from January to April. Previous forecasts have been below actual output. Latest forecast estimates oil production will reach ~11.5 MMBo/D by April 2019. Production ramp expected to begin around the start of the fourth quarter 2018.

EIA Short Term Energy Outook Forecasts

Apr 4, 2018

Methodology Obtain historical data from EIA starting in the fourth quarter of 2017. Highlight forecasts to show monthly change. Highlights Noted increased production revisions to EIA forecasts from January to April. Previous forecasts have been below actual output. Latest forecast estimates oil production will reach ~11.5 MMBo/D by April 2019. Production ramp expected to begin around the start of the fourth quarter 2018.

Monthly Permits

Apr 4, 2018

Overview of Permitting Activity Live link to DrillingInfo which is updated daily Currently only shows horizontal permits Wells contains following permitting attributes: Company, Well Name, Well Type, Approval Date, Formation and Permit Depth 2nd map attempts to identify permitted well pads using clustering Note: Well counts do not include previously drilled or permitted wells at this time Top 20 operators are colored in map and chart April Permitting Activity {"

Flowback Methods in the Permian

Apr 4, 2018

Methodology Analyze completion filings obtained from NMOCD and data from IHS to gain a better understanding of flowback strategies by our peers. Completion data is from 2017-Current. Highlights Many companies in the Northern Delaware are flowing up 41/2 - 51/2 casing. On the Texas side of the NMTX border, RSP is also utilizing 41/2 casing during flowback.

2017 Reserves And An Update On Market Expectations Through 2019

Apr 4, 2018

Methodology Analyzed thirty companies with significant operations in the Permian Basin. Calculated expected oil growth rates from the market through 2019. Sourced data from FactSet. Highlights Year-end proved reserves for Concho totaled ~841 MMboe which put the company in the top 10 in total reserves. Proved oil reserves made up ~60% of the total. Undeveloped reserves totaled ~253 MMboe, or 30% of the total. In contrast to the peer group, Pioneer only shows 8% of undeveloped reserves.

Oil and Gas Producer Pricing Index

Apr 4, 2018

Producer Pricing Index What does it measure? The Producer Price Index (PPI) program measures the average change over time in the selling prices received by domestic producers for their output. The prices included in the PPI are from the first commercial transaction for many products and some services. Why is it useful? Commonly used in escalating purchase and sales contracts. Indicator of overall price movement at the producer level.

Monthly Permits

Version Update

Overview of Permitting Activity

May Permitting Activity

Identifying Well Pads Using Cluster Mapping